The number of people classed as economically inactive, including students, those on long-term sick leave, taken early retirement or who have given up looking for work, fell by 72,000 to 8.6 million in the latest quarter, giving a rate of 21%, a record low.

The claimant count, which includes people on Jobseeker’s Allowance and the unemployment element of Universal Credit, fell by 7,700 last month to 886,000, around 90,000 more than a year ago.

“It’s a Great British success story, with businesses from Exeter to Edinburgh creating jobs, helping, on average, 1,000 people find a job each and every day since 2010.

“With the increase in the personal tax allowance, the Government has ensured that people are keeping more of their money before they begin paying tax – meaning more take-home pay, that’s more money in your pocket for you and your family.”